Italy Slashes Diesel Tax Again to Counter High Fuel Prices
Italy has approved a temporary cut to diesel tax in response to rising fuel prices, passing a decree to reduce the price of diesel by 0.17 euros (0.19 dollars) per litre until Aug. 6.
Finance Minister Giancarlo Giorgetti said the measure would cost the state around 125 million euros and does not apply to petrol.
The move was justified by rising diesel prices resulting from the currently tense situation in the Middle East and the near-total closure of the strategically important Strait of Hormuz.
Giorgetti said the government would examine whether tax revenues would allow the current measure to be extended.
The prime minister of Italy, Giorgia Meloni said the move was a “Swift and Responsible Response.’’
In a post on X late Monday, Meloni said the cut did not resolve the underlying problem.
“But it is a swift and responsible response that takes into account the limited financial room we have available as well as the constantly changing international situation,” she said.
She said the government would monitor how the situation develops and prepare further steps.
What happens after Aug. 6 is to be discussed at a Cabinet meeting next Tuesday. In Germany, the coalition government ruled out a further fuel tax discount after cuts in May and June. #Italy Slashes Diesel Tax Again to Counter High Fuel Prices#AfDB, Italy Sign Co-Financing Deal to Boost Key Sectors in Africa
